Ciments du Maroc 9.3% fall in profit

Ciments du Maroc closed 2014 with a 5.1 per cent fall in its turnover from MAD3.6bn (US$35m) to MAD3.4bn. The cement producer’s operating results experienced a 9.3 per cent drop to just over MAD1bn.

The company attributes the decline to a slow building and public works sector. In addition, the eight per cent fall in housing starts contributed significantly to the limited growth of 0.8 per cent of the construction market.

Looking ahead, Mario Bracci, Ciments du Maroc’s CEO said: “In 2015, cement demand will be at best at the same level as 2014.” The outlook for the group is mixed. Generous rainfall is expected to yield a good harvest, which in turn leads to forecasts of higher cement demand as does the upcoming election, which is expected to see public orders increase. In addition, a lower cost of fossil fuels is also predicted to benefit profit margins. But ongoing international economic woes and a scarcity of bank liquidity may negatively impact the markets.

Ciments du Maroc will also be expanding its production base. “By the of the year, we expect to launch the first phase of the project to install a grinding center in Tangier. It should be delivered in late 2016. Eventually, the plant will have a capacity of 0.5Mta of product volume, for an investment of MAD300m,” said Mr Bracci. It is expected that Tangier will be supplied by the nearby grinding unit of parent company Italcementi, which is in oversupply. The group reportedly intends to use Italcementi as a vehicle to set up grinding units,”every 500km along the west African coast, but also in landlocked countries such as Burkina Faso.